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Vernon Company operates three segments

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Vernon Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. VERNON COMPANY Income Statements for Year 2 Segment A B Sales $ 165,000 $247,000 Cost of goods sold (125,000) (92,000) Sales commissions (20,000) (26,000) Contribution margin 20,000 129,000 General fixed operating expenses (allocation of president's salary) (42,000) (38,000) Advertising expense (specific to individual divisions) (6,000) (13,000) Net income (loss) $ (28,000) $ 78,000 ? $247,000 (83,000) (30,000) 134,000 (38,000) 0 $ 96,000 Required a. Prepare a schedule of relevant sales and costs for Segment A. b. Prepare comparative income statements for the company as a whole under two alternatives: (1) the retention of Segment A and (2) the elimination of Segment A. Complete this question by entering your answers in the tabs below. Required Required ? B Prepare a schedule of relevant sales and costs for Segment A. Relevant Rev. and Cost items for Segment A Sales Effect on income < Required A Required B > Required Required A B Prepare comparative income statements for the company as a whole under two alternatives: (1) the retention of Segment A and (2) the elimination of Segment A. VERNON COMPANY Comparative Income Statements for the Year 2 Decision Eliminate Keep Seg. A Seg. A Sales Cost of goods sold Sales commissions Contribution margin General fixed operating expenses Advertising expense Net Income < Required A Required B